Tuesday, February 19, 2013

Another Whopping Surplus

OCBC Treasury is saying Singapore’s FY2012 budget surplus may possibly be four times higher than initial estimate, a whopping $5 billion:
 "Based on our estimates, the FY12 budget surplus could come in as high as $5b, which if it materializes would be about fourfold of the initial estimated FY12 budget position of $1.27b. This is potential testament to the fact that while headline GDP growth was very modest at 1.2% year-on-year last year, receipts have been buoyant for the year-to-date FY2012."

OCBC said top revenue generators remain corporate and personal income taxes and GST which accounted for nearly 55% of total operating revenue. But Certificate of Entitlement (COE) premiums have also risen significantly due to the quota cuts, and stamp duty receipts benefited from the strong rebound in the property market prices. Which explains why the Government continues to ignore calls to revamp the COE system, and take half-hearted measures to cool the over heated property market. Who cares if the people suffers, what matters most to them is that the Government coffers keeps swelling and busting its seams.

The surplus could also be attributed to the fact that monies budgeted for "social welfare" may not be fully disbursed.  Take for instance, the part of the Enhanced Baby Bonus scheme whereby savings to a child’s Child Development Account (CDA) are matched dollar-for-dollar by the Government for up to $6,000 each for the 1st and 2nd child, up to $12,000 each for the 3rd and 4th child, and up to $18,000 each from the 5th child onwards. For the lower income groups who struggle to maintain at least $1,000 in their bank account, they may never get to benefit from the largesse of the dollar-to-dollar offer. Recall one colorectal surgeon who once purportedly had only $10.50 in the joint account.

One again, while the rich gets richer, the poor is left lying in the dust. According to one man, this has been and will always be the case for Singapore.
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25 comments:

  1. According to the always wise "coverment" of ours, having budget surplus is a good thing. An envy of almost All governments.

    Trouble is, if a company consistantly do not declare dividends or use its cash reserve "efficiently", the shareholders will demand a change of CEO.

    Not that I like my country to be run as a company, which many of us already conclude that it is, we never have enough voting power. Not with a scheme called GRC.

    ReplyDelete
  2. GRC is used by PAP to instill fear on people who are afraid of voting out the government. If the fear is somehow dispelled, the will be a regime change. Opposition, especially Low Thia Khiang, has to convince people that they can and are ready to form the new government. We cannot afford to wait for GE 2021. By then it is too late.

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  3. And they wonder why the $2 stores opened by Pinoys are doing roaring business in HDB estates while COE hits $100k and good class bungalows are snapped up like hot cakes! This is what you get when dogmatic, follow-the-old-rule scholars run economic policies. They don't understand that it is a zero sum game: the more the government keeps, the less there is for the people to spend; when retail sales fall, they resort to population ponzi instead of reviewing their GST and other solcial policies. Budget surplus of this magnitude year after year (abt 10% of total budget) means a grossly misguided economic policy, bordering on fascism where the people bows to the prerogatives of the state (and their cronies). It's a beggar thy people policy.

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  4. It is the case for any capitalist driven model. The poor subsidize the rich. Not just in Singapore.

    ReplyDelete
  5. "GST is to help the poor."
    Really?
    Show me the money.

    "Government surplus is good for Singapore."
    But not so good for Singaporeans.

    ReplyDelete
    Replies
    1. The poor do... do ..have a problem to maintain even $500 in their accounts.

      ITs simply a stupid scheme ,yes only the rich get richer
      millions of dollars in salary to come up with such bright ideas

      Delete
  6. Indeed, if the coffers swell and no dividends are forthcoming, in theory, it opens a company to a raid from outsiders who see value in this company. But to me the raiders are within, with their high salaries, and cronyisms.

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  7. A government surplus means the government has over-recovered its cost.
    Meaning Singaporeans are over-taxed.
    And the poor have not been receiving sufficient help.

    Governments exists to serve the citizens.
    Not the other way around.

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  8. The surplus is a result of squeezing & sucking the blood of the common folks and leave them dry. How can they have the conscience to ask for millions for themselves and yet can't even implement a minimum wage for the low income earners ?

    It's a fact that the poor do not support & vote for PAP hence it's a kind of retaliation. LKY already warned us. The White Paper is the outcome. Why else has LKY kept silent on the whole issue ?

    The way they try to push the White Paper through and later try to find excuses to say it is only a planning parameter or worse case scenario is already proof that they don't really give a damn to the welfare of the people in the first place.

    How long can we allow those lies & hypocrisy to continue ?

    ReplyDelete
    Replies
    1. Just look at the CECA "deal" with India. What exactly do we get out of them, in exchange for 200,000 of their PMET "talents" with dubious degree and quality in competition with our locals? Any reasons why won't the middle class be revolting against PAP?

      IfI bring in the likes of Angela Merckel, Obama or Clintons or even throw in Yingluck or Najib, and put them to run in an open election immediately (because we recognise all their talents), where do you think our PAP MPs will stand today?!

      SO What "equality" are we talking about here?

      Delete
    2. Hahaha, actually let's bring the PM of India Manmohan Singh

      Salary: Rs. 50,000
      Sumptuary Allowances: Rs. 3,000
      D. A.: Rs. 62,000
      Constituency Allowances: Rs. 20,000

      Hence, currently Manhmohan is getting Rs. 1, 35,000 (One lakh and thirty five thousand) per month = US$2,500 !!!

      Wow, in that case, the people will surely vote for MrSingh because he is cheaper, better and faster too! Singaporeans can benefit from his talented governance. If not, even Obama is cheaper at U$400,000!

      Please bring them in. I like to see our PaP MPs/leaders become taxi drivers on our red dot.

      Delete
  9. IS very simple.

    Men are self-evidently not equal. It should be obvious that “all men are [not] born equal”. Some are born ill, others well. Some are born into families, others begin life as orphans. Some have wealth, others live in poverty.

    But men are also fallible. And not only are they fallible to different degrees, resulting in a society which always divides people, criminal or saint, slave or master, coward or hero — but their fallibility also exacerbates their natural inequality in numerous ways. If men were “angelic”, inequality would not matter — but as men are not, then unequal power corrupts.

    An unequal distribution of power delivers disproportionate opportunities for human immorality to be satisfied. Therefore our natural moral fallibility exacerbates our natural inequality.

    I think most people, like me, grudgingly respect that the State’s impact on the distribution of wealth is up for debate.

    ReplyDelete
  10. "People, he maintains, are not supposed to be equal"
    So whatever happened to:
    "..pledge ourselves as one united people,
    regardless of race, language or religion,
    to build a democratic society
    based on justice and equality"?

    Was it wayang all along?

    ReplyDelete
    Replies
    1. No it is not if we understand it in its proper context.

      In LKY's context, he was simply happy to use that during his epoch to differentiate his talents & skills thus accord him the "better person" to lead.

      Nowadays when it is said that all men are born equal it usually means that they are born with equal rights that are recognised, accorded, and assured by the law of the country. They are equal in terms of the rights they possess by the law, not by the circumstances of their birth or their life. As Article 1 of the Universal Declaration of Human Rights goes:

      "All human beings are born free and equal in dignity and rights."

      When the law of a country assures equal rights for all her citizens it means they have equal access to the opportunities available in the country provided they are willing to work hard to avail themselves to it. It is the latter context that PAP did not/never do bother to acknowledge - equal in dignity and rights that is sorely lacking.

      Delete
    2. Cheeem ah !

      Delete
  11. which is why one should never trust the ShittyMedia or the PAPpies when they says that SMRT or public bus transport, singtel, m1 etc losing money and profit compare to previous years due to measurement, because you need to analyze their accounting statement. They might just increase their salaries to millions and lavish themselve to spend the profit to keep the impression that profit is down, and make that point that measurement is working. We in corporate know how window dressing the profit pie work. You know our gov is a expert in creative accounting and creative manipulation, didn't we ? Don't be daft anymore.

    ReplyDelete
  12. we have surplus of money, surplus of talents, surplus of millionaires, surplus of land and surplus of jobs !!! amazing, we are in such a surplus of abundance, so why are we the unhappiest and unemotional bunch huh?

    is that why colorectal surgeon is saying we 当局者迷,旁观者清?
    no wonder he doesn't need our "sympathy votes" as he has the backing of a very wealthy indonesian businessman from the Mayapada Group who is asking what singaporeans can do for the country, conveniently forgetting what the sinkies have been doing the last 4 decades of NS and turning peanut monkeys into 100 pound Gorillas in the parliament house! With rich PR or new citizens like this, why do they need the middles class sympathy votes even?!

    http://forums.vr-zone.com/chit-chatting/2713788-please-wake-up-singaporean-indonesian-businessman.

    html#post12801869http://biz.thestar.com.my/news/story.asp?file=/2013/1/12/business/12560781&sec=business

    ReplyDelete
  13. Biz as usual2/19/2013 6:01 PM

    .http://www.economist.com/blogs/banyan/2013/02/protest-singapore

    ..But there’s no whiff of insurrection in the air; I reckon the prime minister will survive. Your investments are safe...//

    Did the 5000 turn up make any dent? The conclusion is No.

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  14. Come 2016 they must show us the money..........or give me my CPF at 55

    ReplyDelete
  15. So this year bonus how many months ah?

    ReplyDelete
    Replies
    1. How about if I don't replace you with a foreigner?
      And I don't cut your pay.
      Bonus like this good enuff or not?

      Delete
    2. Money no enough leh...

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    3. What more do you want?
      3 meals in a hawker centre, a food court or a restaurant?

      No money, stay in Johor lah.
      Better still emigrate.
      We don't want poor people in Singapore.

      Delete
    4. restaurant food lah toot !

      Delete
  16. This comment has been removed by the author.

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